Speaker, hon Ministers present here, hon members, the amending Bill owes its existence to two important decisions that necessitated the principal Act to be reviewed.
Firstly, the Constitutional Court had found out that the Constitution does not authorise provincial legislatures to pass their own financial management legislation. Consequently, various provincial statutes dealing with the financial management of provincial legislatures are unconstitutional and invalid. Only Parliament has the legitimate authority.
Parliament was directed by the Constitutional Court's ruling to either assign such authority or powers to the provincial legislatures or pass national legislation to deal with the financial management of provincial legislatures.
The committee was therefore tasked by Parliament to amend the provisions relating to the financial management for provincial legislatures.
Secondly, in September 2012, informed by technical challenges that arose in the implementation of the Financial Management of Parliament Act, the NA referred the Act to the Standing Committee on Finance, and requested the committee to review the Act and introduce the amending legislation.
The key challenge cited was the composition of the oversight mechanism of Parliament. The task given to the committee was to align the governance structures of Parliament with the oversight mechanism contemplated in the Act.
On the amendments of the membership of the oversight mechanism and conflict of interest, the current Act provides that the executive authority - which is the Speaker and the Chairperson of the NCOP, the Deputy Speaker and the permanent Deputy Chairperson - may not be members of the oversight mechanism and may only participate in the deliberation of the oversight mechanism at the request of the oversight mechanism or body.
The amendment that the Standing Committee on Finance has introduced provides for the governance and functions to be placed under the co- chairmanship of the Speaker and the Chairperson of the NCOP, including planning and budgeting functions. This change therefore means that the executive authority will participate and preside over the oversight mechanism.
The standing committee in its deliberations resolved that the executive authority could only perform the planning and budgeting functions of Parliament by being present on the oversight mechanism.
The amendments effected by the standing committee require that the Joint Rules of Parliament be amended so as to provide that no member of the oversight mechanism may deliberate on a matter in which he or she has a material interest, particularly on matters of procurement in Parliament, in order to prevent any real or perceived conflict of interest arising from the procurement processes.
The amendments further promote transparency and accountability and will also limit the possibility of corrupt practices in the procurement system. In arriving at these decisions, the standing committee was informed by a number of comparative international experiences.
On the financial management of provincial legislatures, the decision of the standing committee took cognisance of the views of the Speakers' Forum in coming to its decision.
The standing committee resolved that the financial management of provincial legislatures be provided for in an amendment to the Financial Management of Parliament Act and not by legislative competence being assigned to the provincial legislatures.
The amendments have drawn upon similar pieces of legislation or experience from similar legislation such as the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act.
The Standing Committee on Finance in accordance with Rule 243 submits the Financial Management of Parliament Amendment Bill for approval by the House. Thank you. [Applause.]
There was no debate.
Declarations of Vote: